CURRENT SITUATION OF CRYPTO IN PAKISTAN
Yet, statistical data indicates an absolutely perverse way. It is estimated that 4.1% of Pakistanis, or approximately nine million people, hold some type of cryptocurrency in their possession. Given these trends, it's safe to assume that there is a sizable community of crypto enthusiasts. Nevertheless, Pakistan's regulatory system is still lagging behind in terms of being able to tolerate any changes to the status quo.
At the very least to some degree, each and every one of the concerns is warranted. Price volatility is endemic to cryptocurrencies and has the potential to overnight destroy any remaining foundations of stability, as evidenced by the current crypto market collapse. Over the course of just four trading days, the world's financial markets have lost more than $300 billion, mostly as a result of widespread speculation. Because decentralized digital currencies are primarily used for speculative purposes, many emerging economies have not formally recognized them.
China and India in a very real sense are walking examples of what a perfect economy for developing countries should look like. Despite being home to the majority of cryptocurrency aficionados, each has implemented regulations that make it more difficult for businesses to use cryptocurrencies.
Mining cryptocurrencies is already against the law in China, and traditional financial institutions are not allowed to participate in cryptocurrency trades. Russia, which is home to the vast majority of the world's bitcoin miners, is mulling over whether or not to outlaw private cryptocurrencies while simultaneously making preparations to introduce its own digital currency.
Despite the pessimistic picture from the regulatory perspective, hundreds of Pakistani merchants improvement in their economy via cryptocurrency platforms located all over the world. There are still many well-known cryptocurrency exchanges operating in Pakistan, but they do so through "ghost partners," which allows them to totally sidestep the regulatory system.
The governing bodies need to realize that merely outlawing cryptocurrency transactions does not necessarily mean that there would be no cryptocurrency activity in Pakistan. Without a complete legislative framework, cryptocurrency exchanges will continue to operate in the shadows of the underground economy, where they are not subject to any regulations.
When it comes to regulation, stringent oversight does not equal thoroughness. Therefore, it's crucial to study blockchain technology so that we can amass the resources to close any regulatory gaps and ease the technology's way into conventional markets. The State Bank and government authorities should work together with national innovators and crypto lovers to establish a welcoming atmosphere rather than outright prohibiting domestic crypto platforms and levying fines.
In conclusion, Pakistan is still in its developing phase of crypto. People are ready to accept this digital currency and even trade but somehow, they aren’t allowed to work on it due to policies made by authorities. We hope to see cryptocurrency trading on a successful manner in future for the people of Pakistan.
Very Informative blog ☺️☺️
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